Investing in Stocks
What is a dividend?
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A dividend is a distribution of part of a company's profits to its shareholders; types include cash dividends paid in cash and stock dividends paid in new shares.
Dividends are received in proportion to the number of shares held, and they are a distribution of after-tax profit to shareholders, not a company expense. There is no guarantee that dividends will continue to be paid.
This answer is general financial information as of 2026-10-14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
